Hyperlocal – A Raising Boom

  Introduction The Indian retail industry is worth $500-600 billion. Of this, grocery items account for about 67% of the revenue.E-commerce or h

LOGO ka kaam hai kehna
A World Without leaders



The Indian retail industry is worth $500-600 billion. Of this, grocery items account for about 67% of the revenue.E-commerce or hyperlocal are obviously a tiny part of the pie just yet. They Constitute of About 5 % of the total retail industry.The Difference between E-commerce & Hyperlocal is the type of demand.Depending on the Category the E-commerce profit margin ranges from 2-7% where as for hyperlocal it’s 3-10%. In rare cases they may charge even more in hyperlocal depending on the demographic factors and urgency of demand.

Factors for growing Hyperlocal Business

  • Instant Demand
  • Convenience
  • Visibility of Stores in case of grievances.
  • The Delivery within 24 hours.
  • The solution for the problem faced by people.
  • Easy access.
  • When moving to new place.
  • Word of Mouth.
  • Increasing urbanization

The Major Indian Hyperlocal Startups
The Hyperlocal have turned the investors towards them leaving Ecommerce behind. The rapid development of business and demand of hyperlocal is one reason behind it.
Present Scenario of Industry
With the presence of number of players in Hyperlocal, the survival depends on the business fundamentals and execution of the companies.And even E-commerce are now looking into Hyperlocal this was an example to say that trend was shifted towards Hyperlocal.We have found that E-commerce giants have started investing in Hyperlocal such as

  •   Snapdeal invested in  Peppertap
  •   Paytm into jugnoo
  •   Amazon into Amazon Kirana
  •   Flipkart planning to launch FQck, Flipkart nearby

With the rise of hyperlocal the e-commerce sector facing stiff competition to get series investments. In 2015 alone the Hyper local has attracted more than $250+ million funding.(Source Ken Research).

The Hyperlocal startup Categorized in various sector

Market Segment by Region

As compared to 2014, the Indian hyperlocal market revenues grew at a rate of 41% in 2015.The Ken research report reveals that the Indian hyperlocal market will grow at a considerable CAGR rate, thus expected to exceed$343.6 Mn (INR 2,306 Cr) by 2020.

Key Challenges Facing by Hyperlocal

  • Timely meet of demand.
  • Reduce the slack time
  • Huger competition survival of the fittest.
  • Reliable workforce
  • Geo graphical expansion
  • Continuous customer support
  • Unavailability of Customer on time of delivery.


From the  above finding s and research we found that hyperlocal is the next future of online business. The E-commerce growth in Tier 1 and metros cities has been stagnated and it was hard to scatter across all geographies  because of poor logistics available. So, the E-commerce also targeting hyperlocal for revenue generation in future. The investment done  into hyperlocal startups by big players in E-commerce is an evidence that the next boom industry is hyperlocal.

The increasing in need and urbanization  has increased the demand for Hyperlocal. In present scenario every city in India has more than one hyperlocal startup.